Xiaomi unveils big loss as it prepares to hawk IPO to investors

Xiaomi's biggest business, smartphones that barely make a profit, declined in importance to just 67.5% of sales from more than 70% in 2017. — Bloomberg

Xiaomi Corp revealed it lost more than US$1bil (RM3.97bil) in the first three months, as the Chinese smartphone maker prepares to persuade investors to buy into the largest initial public offering since 2014.

The eight-year-old company has begun gauging demand for a first-time share sale intended to fuel its expansion beyond China and bankroll the development of devices and media services. It also published its first prospectus for the sale of China Depositary Receipts in Shanghai on June 11, saying it plans to use about 40% of the proceeds to enlarge its global footprint. Xiaomi reported a 7bil yuan (RM4.36bil) net loss on revenue of 34.4bil yuan (RM21.42bil) in the first quarter.